JPMorgan Sues Ex-Advisor Over $161 Million Client Shift to Morgan Stanley
Updated
Updated · Wealth Management · Jun 26
JPMorgan Sues Ex-Advisor Over $161 Million Client Shift to Morgan Stanley
2 articles · Updated · Wealth Management · Jun 26
Summary
JPMorgan asked a Florida federal court for a temporary restraining order against former advisor Brian Krauthamer, alleging he solicited ex-clients after leaving for Morgan Stanley on May 1.
The bank says Krauthamer violated one-year non-solicitation and confidentiality clauses by using client data — including personal cell numbers — to pitch Morgan Stanley as offering more than JPMorgan.
About 90 households with roughly $161 million had already opted to move with Krauthamer, according to the suit; JPMorgan says he previously handled about 244 households with $229 million in assets.
The case fits a broader JPMorgan pattern of suing departing bank-branch advisors, whose contracts often carry tighter restrictions because the firm says it helped build their books of business.